University-business engagement for Innovation – a partnership that works? Professor Nola Hewitt-Dundas

Conventional Wisdom Public investment in Universities (and in particular research) is based on expectation of strong public good Universities are perceived to play a key role in the knowledge economy “The challenge is therefore not so much to develop new research capabilities but rather ensure that NI can better utilise its current research strengths.” Economic Strategy, 2011, p.76 University knowledge is sensitive to distance – in NI this may also be geographically constrained Disconnect between Higher Education and Business – Problematic partnership?

Assumptions & Agenda… Assumptions: Universities are Homogenous ‘Sources’ of knowledge All businesses should be cooperating with Universities for Innovation Northern Ireland universities are not good at cooperating with businesses Agenda: Do all Universities offer the same knowledge to businesses? To what extent are businesses ‘partnering’ with Universities for innovation? What type of businesses are ‘partnering’ with Universities for innovation? Is NI underperforming in ‘partnering’ between Universities and businesses?

How do Universities differ? LRI and HRI! 2007 UK Government review of science and innovation policy distinguished between ‘research universities focusing on curiosity-driven research, teaching and knowledge transfer, and business-facing universities focusing on the equally important economic mission of professional teaching, user-driven research and problem-solving with local and regional companies’ (HM Treasury, 2007, p. 5). Perceived strategic contribution: HRI – greater strategic focus on knowledge transfer activities related to development and exploitation of IP LRI – human capital development and local partnerships Reflects organisational goals and objectives,  strategic academic priorities  valorization of this academically and commercially

How do Universities differ? LRI and HRI! Knowledge Transfer Activity: HRI – significantly greater income from IP activities (Licenses & Spin-outs) HRI – do not confine themselves to ‘co-production’ engagement with businesses But also from all other forms of KT e.g. contract research, collaborative research, consultancy, facilities & equipment hire, training and CPD Suggests that Research - through academic publications and IP - acts as a market signal to businesses

What do businesses want from Universities? Majority of interaction with Universities is motivated by factors other than immediate commercial outcomes Obtaining knowledge of scientific and technological advances Access to instruments and experimental materials Access to students and faculty (knowledge talent) Solving specific problems How do they get this? Employees – including placements Formally – collaborative research, contract research, consultancy, facilities & equipment, CPD and training, IP (licenses), KTPs, innovation vouchers etc.; People-based activities e.g. lectures, advisory boards Informally – social contacts

Proportion of NI firms with Links for Innovation, and links to Universities

What type of businesses cooperate with Universities? Have Internal R&D capability Above average share of Graduates (relative to sector) Lower employment growth Introducing new to the market products or services Higher share of sales from export markets Government support for R&D or innovation Local Universities Small firms Where the lack of qualified personnel is a barrier to innovation Where there is a research-intensive university nearby Where government support is regional (as opposed to EU)

Measuring Knowledge Transfer Activity across the UK Regions

Regional Knowledge Transfer Activity

Regional Knowledge Transfer Activity

Not so Conventional Wisdom Development of University Inward and Business Outward mentality Investment in NI University research has not increased significantly. Where should the policy priority be? developing cooperation for regional impact OR developing research excellence Not all universities are the same – policy expectations must be balanced against the organisational priorities of each University Greater Localization of Knowledge in NI - Northern Ireland Universities are outperforming universities in all other UK regions in the share of activity performed locally. Is it possible to exceed an optimum level of local engagement? Not all ‘Northern Ireland’ businesses can benefit from University Knowledge – need for realistic policy making in nurturing university-business links